VIPA starts providing loans for the construction of typical production buildings
On 30 May 2022, the Public Investment Development Agency (VIPA) started providing loans for the financing of the construction of typical production buildings in free economic zones, industrial parks and other industrial areas of the Republic of Lithuania. EUR 41.4 million from the State budget of the Republic of Lithuania was allocated for the implementation of the financial instrument.
Funds under the instrument are used to finance investments in the creation of economic infrastructure and the new construction or reconstruction of typical production, industrial or research buildings. A typical production building is a multi-purpose building adapted for production with a fully developed infrastructure. Such a building is designed for standardised production with a possibility to expand.
“This instrument is important to attract investors who want to start activities immediately. The investor or manufacturer receives a fully prepared building infrastructure and can start production processes with its own equipment and facilities from the first day of investment or adapt the premises within 1-2 months at most. Investing in the construction of standard production buildings reduces the time required to start operations and provides flexible conditions for expansion,” says Asta Gladkauskienė, Head of Customer Service Department at VIPA.
Who are eligible for loans?
Long-term (up to 15 years) soft loans are granted to management companies in free economic zones, their subsidiaries, industrial park operators (excluding individuals) and municipalities. A fixed annual interest rate of 1.5% will apply in the cities of Vilnius, Kaunas and Klaipėda and their districts, and 1% – in other regions of the Republic of Lithuania.
What are eligible costs?
The costs of new construction or reconstruction of a typical production building, including costs of preparation for construction (the drafting of a technical design of the building, obtaining a construction permit), land plot improvement, installation and/or improvement of infrastructure and engineering networks on the land plot and of engineering systems in the building, technical supervision of the construction of the building, and supervision of the project, are eligible for financing under the instrument.